Planning for the Future: Essential Steps to Secure Your Retirement

Planning for the Future: Essential Steps to Secure Your Retirement

January 15, 2025

Is your retirement savings on track?

If you’re like most people, you may feel it’s not. In fact, concerns about running out of money in retirement are very common.1, 2

Many people today believe they’ll need at least $1.5 million saved to retire comfortably.3 But is that number right for you? The real “magic number” varies widely depending on your current savings, future goals, and lifestyle plans.

A clearer picture of retirement readiness starts with understanding some general rules of thumb, strategies for calculating your personal “magic number,” and practical tips to help build a reliable nest egg for your future.

Retirement Savings Milestones: 5 Recommendations

Setting retirement savings milestones can help you determine what to save monthly and annually to stay on track. While these targets may vary, here are some helpful benchmarks to consider.

1. Age 30 = Your Salary

By age 30, aim to save at least one year’s worth of your salary for retirement. Hitting this goal allows you to start benefiting from the power of compound growth.

2. Age 40 = 3x Your Salary

Though expenses may grow as families do, keeping pace with retirement savings goals may mean saving at least three times your salary by roughly age 40.

3. Age 50 = 6x Your Salary

As you get closer to retiring, look at ways to:

  • Pay down debt to enter retirement with minimal liabilities.
  • Maximize retirement contributions to reach about six times your salary by age 50.

4. Age 60 = 8x Your Salary

As you approach retirement, think about:

  • How and when you might transition to retirement.
  • Whether a part-time role could be part of your plan.
  • Aiming to have at least eight times your salary saved by age 60.

5. Average Retirement Age (67) = 10x Your Salary

If you plan to retire around age 67, which is the full retirement age for Social Security benefits, aim for about ten times your annual salary.4 For instance, a salary of $100,000 would suggest a target of $1 million by retirement.

Keep in mind:

  1. These recommendations provide broad estimates for guidance and tracking progress.
  2. As you gain experience and your salary grows, these milestones may shift as your income changes.
  3. These benchmarks may not fit everyone’s personal retirement plans and should be adapted to individual goals.

5 Personal Factors that Impact Retirement Savings Goals

While general savings milestones provide helpful guidelines, personal factors can greatly influence your actual retirement needs. Here are five key considerations to help you define your unique retirement target:

  1. When Do You Want to Retire?
  2. What age do you envision for retirement? Deciding when to retire can dramatically affect how much you’ll need, especially if you plan to stop working before becoming eligible for full Social Security benefits.
  3. What Lifestyle Do You Want in Retirement?
  4. Are you dreaming of frequent travel, a quiet life filled with hobbies, or something in between? The more you can clarify your lifestyle goals, the better you’ll understand the financial resources you’ll need to enjoy your future comfortably.
  5. Where Will You Live?
  6. Do you plan to stay put, downsize, or relocate? Your choice of location impacts cost of living, taxes, and potential housing expenses, including maintenance if you own a home. These variables can influence how much you should save.
  7. Will You Retire with Debt?
  8. Are there ways to limit the debt you’ll retire with? Ideally, entering retirement with minimal or no debt allows more flexibility with your income. The more debt you carry, the more challenging it may be to cover expenses comfortably in retirement.
  9. What About Health Care When You Retire?
  10. Health care and long-term care can be significant expenses. The average retiree may need upwards of $157,000 for health care alone, and those costs typically rise with age and inflation.5

While these may not be the only factors to consider, they’re valuable starting points for refining your “magic number” and setting a solid foundation for retirement planning.

Retirement Savings Tips: 7 Actionable Ideas

Reaching your retirement goals often requires more than knowing general milestones or understanding personal factors. Here are seven tips to help you stay on course and save strategically.

1. Start Saving Early & Maximize Compound Growth

The earlier you start saving, the more time your investments will have to grow. Even small contributions early on can balloon over time.

2. Maximize Employer Contributions

If your employer offers a match on your 401(k) or another retirement plan, aim to contribute enough to capture the full match. It’s essentially free money for your retirement.

3. Set Aside a Percentage of Your Salary

Commit a portion of your salary directly to retirement savings—ideally around 15% of your annual income, including any employer match. Hitting this target can keep you on track toward long-term goals.

4. Diversify Your Investments

Balance your portfolio with a mix of stocks, bonds, and other assets. Diversification can better insulate your retirement savings from volatility, especially as you get closer to retiring.

5. Reassess & Adjust Savings Regularly

As life changes, you may need to reassess your savings plan and retirement contributions. That’s why it’s important to regularly revisit your retirement savings strategies to make sure they still work for you and are the best options for achieving your objectives.

6. Plan for Unexpected Expenses

Life is full of surprises. Setting up an emergency fund can help you deal with any unexpected expenses, so you don’t have to dip into your retirement savings prematurely.

7. Keep Track of Your Retirement Income Sources

Estimate your monthly retirement income from Social Security, pensions, and personal savings. Then, compare this with projected monthly expenses in retirement to see if your income will meet your needs. This will give you a clearer picture of your future financial landscape.

Achieving Your Ideal Retirement: The Next Steps

Building the retirement you envision takes careful planning and a steady commitment to saving. It requires understanding how retirement savings work, clarifying your goals, and adopting smart strategies to secure your future.

The good news? You don’t have to do it alone. Partnering with an experienced financial professional can provide valuable guidance, helping you discover effective strategies tailored to your unique retirement goals.

Sources

  1. https://www.tiaa.org/content/dam/tiaa/institute/pdf/insights-report/2023-01/longevity_literacy_financial_literacy_and_retirement_readiness.pdf
  2. https://press.aarp.org/2024-4-24-New-AARP-Survey-1-in-5-Americans-Ages-50-Have-No-Retirement-Savings
  3. https://news.northwesternmutual.com/2024-04-02-Americans-Believe-They-Will-Need-1-46-Million-to-Retire-Comfortably-According-to-Northwestern-Mutual-2024-Planning-Progress-Study
  4. https://www.ssa.gov/pubs/EN-05-10035.pdf
  5. https://www.experian.com/blogs/ask-experian/reasons-expenses-could-rise-in-retirement/

This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2025 Advisor Websites.

This is what we do. Get in touch today.

Let's Get Started

Address

535 Third Street
Beaver, PA 15009

Follow Us

LPL Disclosures
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Three Cord True Wealth Management, LLC, a Registered Investment Advisor and separate entity from LPL Financial.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AR, AZ, CA, CO, DC, FL, GA, IA, KS, MD, ME, MA, MI, MO, NV, NC, NJ, NY, OH, PA, SC, TN, TX, VA, WA, WV.

Professionals associated with Three Cord True Wealth Management,LLC may be either (1) registered representatives with, and securities and advisory services offered through LPL Financial, Member FINRA/SIPC, a registered investment advisor; or (2) solely tax professionals of Three Cord True Wealth Tax Solutions, LLC, and not affiliated with LPL Financial. Tax-related services offered through Three Cord True Wealth Tax Solutions, LLC DBA [Three Cord True Wealth Management, LLC]. Three Cord True Wealth Tax Solutions, LLC is a separate legal entity and not affiliated with LPL Financial. LPL Financial does not offer tax advice or Tax-related services.

No client of Three Cord True Wealth Management, LLC is under any obligation to use the services of Three Cord True Wealth Tax Solutions, LLC and can engage a non-affiliated Certified Public Accountant or tax preparation service provider.

Three Cord True Wealth Management Important Disclosures

Three Cord True Wealth Management, LLC is an SEC-registered investment adviser. Three Cord True Wealth Management, LLC may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. Three Cord True Wealth Management, LLC website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information such as articles written by third parties, firm-written newsletters and/ or publications, and third-party links. Accordingly, the publication of Three Cord True Wealth Management, LLC website on the Internet should not be construed by any consumer and/ or prospective client as our Adviser's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by the Adviser with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Three Cord True Wealth Management, LLC, a copy of Three Cord True Wealth Management, LLC’s current written disclosure statement discussing Three Cord True Wealth Management, LLC's business operations, services, and fees is available at the SEC' s investment adviser public information website -www.adviserinfo.sec.gov 307480 or from the Adviser upon written request, nraught@3ctruewealth.com.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by the Adviser), will be profitable or equal any historical performance level(s).

This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/ or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice.

Insurance products and services are offered and sold through Three Cord True Wealth Management, LLC and individually licensed and appointed insurance agents.

© 2025 Three Cord True Wealth Management All rights reserved.